AxoGen (AXGN) 10-Q 8 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 01, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-36046
Entity Registrant Name	Axogen, Inc.
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-1301878
Entity Address, Address Line One	13631 Progress Blvd., Suite 400
Entity Address, City or Town	Alachua,
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32615
City Area Code	386
Local Phone Number	462-6800
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	AXGN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		42,286,590
Entity Central Index Key	0000805928
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 14,318	$ 32,756
Restricted cash	6,251	6,251
Investments	38,792	51,330
Accounts receivable, net of allowance for doubtful accounts of $606 and $276, respectively	21,363	18,158
Inventory	19,116	16,693
Prepaid expenses and other	2,614	1,861
Total current assets	102,454	127,049
Property and equipment, net	74,867	62,923
Operating lease right-of-use assets	14,751	15,193
Intangible assets, net	3,448	2,859
Total assets	195,520	208,024
Current liabilities:
Accounts payable and accrued expenses	22,017	22,459
Current maturities of long-term lease obligations	1,530	1,834
Total current liabilities	23,547	24,293
Long-term debt, net of debt discount and financing fees	45,487	44,821
Long-term lease obligations	20,634	20,798
Debt derivative liabilities	4,407	5,562
Total liabilities	94,075	95,474
Commitments and contingencies - see Note 12
Shareholders’ equity:
Common stock, 0.01 par value per share; 100,000,000 shares authorized; 42,272,223 and 41,736,950 shares issued and outstanding	423	417
Additional paid-in capital	355,187	342,765
Accumulated deficit	(254,165)	(230,632)
Total shareholders’ equity	101,445	112,550
Total liabilities and shareholders’ equity	$ 195,520	$ 208,024

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 606	$ 276
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	100,000,000	100,000,000
Common stock issued (in shares)	42,272,223	41,736,950
Common stock outstanding (in shares)	42,272,223	41,736,950

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenues	$ 36,959	$ 31,204	$ 102,420	$ 95,821
Cost of goods sold	6,176	5,239	18,006	17,503
Gross profit	30,783	25,965	84,414	78,318
Costs and expenses:
Sales and marketing	19,792	18,370	60,349	55,594
Research and development	7,050	6,404	20,347	17,875
General and administrative	8,796	7,880	27,817	24,912
Total costs and expenses	35,638	32,654	108,513	98,381
Loss from operations	(4,855)	(6,689)	(24,099)	(20,063)
Other (expense) income:
Investment income	186	17	172	80
Interest expense	(61)	(417)	(664)	(1,427)
Change in fair value of derivatives	469	(46)	1,155	(152)
Other expense	(57)	(6)	(97)	(137)
Total other expense, net	537	(452)	566	(1,636)
Net loss	$ (4,318)	$ (7,141)	$ (23,533)	$ (21,699)
Weighted average common shares outstanding - basic (in shares)	42,220,519	41,467,596	42,008,013	41,087,568
Weighted average common shares outstanding - diluted (in shares)	42,220,519	41,467,596	42,008,013	41,087,568
Loss per common share - basic (in dollars per share)	$ (0.10)	$ (0.17)	$ (0.56)	$ (0.53)
Loss per common share - diluted (in dollars per share)	$ (0.10)	$ (0.17)	$ (0.56)	$ (0.53)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (23,533)	$ (21,699)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,182	2,059
Amortization of right-of-use assets	1,303	1,418
Amortization of intangible assets	198	148
Amortization of debt discount and deferred financing fees	667	384
Provision for bad debt	566	(145)
Provision for inventory write-down	1,381	2,850
Change in fair value of derivatives	(1,155)	152
Investment losses	44	49
Stock-based compensation	11,437	9,410
Change in operating assets and liabilities:
Accounts receivable	(3,695)	(804)
Inventory	(3,804)	(5,774)
Prepaid expenses and other	(828)	1,146
Accounts payable and accrued expenses	(870)	(927)
Operating lease obligations	(1,320)	(154)
Cash paid for interest portion of finance leases	(1)	(1)
Contract and other liabilities	0	(3)
Net cash used in operating activities	(17,428)	(11,891)
Cash flows from investing activities:
Purchase of property and equipment	(13,456)	(20,641)
Economic development grant proceeds	0	950
Purchase of investments	(24,607)	(39,139)
Proceeds from sale of investments	37,100	49,300
Cash payments for intangible assets	(1,028)	(534)
Net cash used in investing activities	(1,991)	(10,064)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt	0	15,000
Cash paid for debt portion of finance leases	(9)	(12)
Proceeds from exercise of stock options and ESPP stock purchases	990	4,421
Net cash provided by financing activities	981	19,409
Net decrease in cash, cash equivalents, and restricted cash	(18,438)	(2,546)
Cash, cash equivalents, and restricted cash, beginning of period	39,007	55,609
Cash, cash equivalents, and restricted cash, end of period	20,569	53,063
Supplemental disclosures of cash flow activity:
Cash paid for interest, net of capitalized interest	0	646
Supplemental disclosure of non-cash investing and financing activities:
Acquisition of fixed assets in accounts payable and accrued expenses	2,090	1,460
Obtaining a right-of-use asset in exchange for a lease liability	920	1,375
Obtaining of property and equipment in exchange for a lease liability	22	0
Embedded derivative associated with the long-term debt	0	1,173
Acquisition of intangible assets in accounts payable and accrued expenses	$ 177	$ 261

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2020		40,618,766
Beginning balance at Dec. 31, 2020	$ 123,149	$ 406	$ 326,390	$ (203,647)
Increase (Decrease) in Stockholders' Equity
Net loss	(21,699)			(21,699)
Stock-based compensation	9,410		9,410
Issuance of restricted and performance stock units (in shares)		206,193
Issuance of restricted and performance stock units	0	$ 2	(2)
Exercise of stock options and employee stock purchase plan (in shares)		733,970
Exercise of stock options and employee stock purchase plan	4,421	$ 7	4,414
Ending balance (in shares) at Sep. 30, 2021		41,558,929
Ending balance at Sep. 30, 2021	115,281	$ 415	340,212	(225,346)
Beginning balance (in shares) at Jun. 30, 2021		41,337,108
Beginning balance at Jun. 30, 2021	118,703	$ 413	336,495	(218,205)
Increase (Decrease) in Stockholders' Equity
Net loss	(7,141)			(7,141)
Stock-based compensation	2,911		2,911
Issuance of restricted and performance stock units (in shares)		67,249
Issuance of restricted and performance stock units	0	$ 1	(1)
Exercise of stock options and employee stock purchase plan (in shares)		154,572
Exercise of stock options and employee stock purchase plan	808	$ 1	807
Ending balance (in shares) at Sep. 30, 2021		41,558,929
Ending balance at Sep. 30, 2021	$ 115,281	$ 415	340,212	(225,346)
Beginning balance (in shares) at Dec. 31, 2021	41,736,950	41,736,950
Beginning balance at Dec. 31, 2021	$ 112,550	$ 417	342,765	(230,632)
Increase (Decrease) in Stockholders' Equity
Net loss	(23,533)
Stock-based compensation	11,437		11,437
Issuance of restricted and performance stock units (in shares)		315,275
Issuance of restricted and performance stock units	0	$ 3	(3)
Exercise of stock options and employee stock purchase plan (in shares)		219,998
Exercise of stock options and employee stock purchase plan	$ 991	$ 3	988
Ending balance (in shares) at Sep. 30, 2022	42,272,223	42,272,223
Ending balance at Sep. 30, 2022	$ 101,445	$ 423	355,187	(254,165)
Beginning balance (in shares) at Jun. 30, 2022		42,134,504
Beginning balance at Jun. 30, 2022	101,690	$ 420	351,117	(249,847)
Increase (Decrease) in Stockholders' Equity
Net loss	(4,318)
Stock-based compensation	3,849		3,849
Issuance of restricted and performance stock units (in shares)		55,934
Issuance of restricted and performance stock units	0	$ 1	(1)
Exercise of stock options and employee stock purchase plan (in shares)		81,785
Exercise of stock options and employee stock purchase plan	$ 224	$ 2	222
Ending balance (in shares) at Sep. 30, 2022	42,272,223	42,272,223
Ending balance at Sep. 30, 2022	$ 101,445	$ 423	$ 355,187	$ (254,165)

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation General Unless the context otherwise requires, all references in these Notes to “Axogen,” the “Company,” “we,” “us” and “our” refer to Axogen, Inc. and its wholly owned subsidiaries Axogen Corporation (“AC”), Axogen Processing Corporation, and Axogen Europe GmbH. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company as of September 30, 2022, and December 31, 2021, and for the three and nine months ended September 30, 2022, and 2021. The Company’s condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and; therefore, do not include all information and footnotes necessary for a fair presentation of consolidated financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2021, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The interim condensed consolidated financial statements are unaudited and in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of results for the periods presented. Results for interim periods are not necessarily indicative of results for the full year. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2022, are not necessarily indicative of the results to be expected for the full year due primarily to the impact of the continued uncertainty of general economic conditions that may impact our markets for the remainder of fiscal year 2022. Specifically, there can be no assurance that the resurgence of COVID-19 will not affect future results. Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Please see Note 2 to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 28, 2022 for a description of all significant accounting policies. Cash and Cash Equivalents and Concentration The Company considers highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents in the accompanying condensed consolidated financial statements. The Company has not experienced any losses related to these balances; however, as of September 30, 2022, $13,818 of the cash and cash equivalents balance was in excess of Federal Deposit Insurance Corporation limits. The Company had restricted cash balances of $6,251 for each of the periods ended September 30, 2022, and December 31, 2021. The September 30, 2022, and December 31, 2021, balances both include $6,000 and $250, which represent collateral for two irrevocable standby letters of credit. See "Note 8 - Long-Term Debt, Net of Debt Discount and Financing Fees." The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows: (In thousands) September 30, December 31, Cash and cash equivalents $ 14,318 $ 32,756 Restricted cash 6,251 6,251 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 20,569 $ 39,007 St ock-Based Compensation The Company measures stock options granted to employees at a premium price based on market conditions, such as the trading price of the Company’s common stock, using a Monte Carlo Simulation model in estimating the fair value at grant date. The determination of the fair value is affected by the Company's stock price, as well as assumptions regarding several subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards. The Company determines the expected life of each award giving consideration to the contractual terms, vesting schedules, and post-vesting forfeitures. The Company uses the risk-free interest rate on the implied yield currently available on U.S. Treasury issues with an equivalent remaining term approximately equal to the expected life of the award. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statements of operations. The expense has been reduced for forfeitures as they occur. The Company recognizes expense for all stock-based compensation awards, including stock options, restricted stock units ("RSUs"), and performance stock units ("PSUs") granted to employees eligible for retirement, as defined within the award notice and allowing for continued vesting post-retirement, over the retirement notice period and continuously updates its estimate of expense over the notice period each reporting period if a retirement notice has not been provided. Costs of Goods Sold Cost of sales includes direct labor and materials costs related to each product sold or produced, including processing, quality assurance labor and scrap, as well as facility and warehousing overhead supporting our manufacturing operations. All of our manufacturing costs are included in cost of sales. Shipping and Handling All shipping and handling costs, including facility and warehousing overhead, directly related to bringing the Company’s products to their final selling destination are in included in selling and marketing expenses. Shipping and handling costs included in sales and marketing were $1,330 and $1,366 for the three months ended September 30, 2022, and 2021, respectively and $3,863 and $3,657 for the nine months ended September 30, 2022, and 2021, respectively. Recent Accounting Pronouncements In November 2021, the Financial Accounting Standards ("FASB") amended Accounting Standards Codification ("ASC") 832, Government Assistance (issued under Accounting Standards Update ("ASU") 2021-10, Disclosures by Business Entities a bout Government Assistance ). This amendment requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy, including, (1) the types of transactions; (2) the financial statement line items affected by the transaction, and; (3) significant terms and conditions associated with the transactions. The Company adopted the guidance on January 1, 2022 and the adoption of ASU 2021-10 did not to have a material impact on the Company's condensed consolidated financial condition, results of operations or disclosures.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory consisted of the following (in thousands): September 30, December 31, Finished goods $ 12,823 $ 11,011 Work in process 903 813 Raw materials 5,390 4,869 Inventory $ 19,116 $ 16,693 The provision for inventory write-down was $452 and $395 for the three months ended September 30, 2022, and 2021, respectively, and for the nine months ended September 30, 2022, and 2021, the Company had adjustments to the provision for inventory write-downs of $1,381 and $2,850 (including the write-down of Avive inventory of $1,251 in the 2021 period), respectively.

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): September 30, December 31, Furniture and equipment $ 5,408 $ 5,100 Leasehold improvements 15,569 14,952 Processing equipment 4,229 3,984 Land 731 731 Projects in process 58,595 45,660 Finance lease right-of-use assets 131 110 Property and equipment, at cost 84,663 70,537 Less: accumulated depreciation and amortization (9,796) (7,614) Property and equipment, net $ 74,867 $ 62,923 The Company further added to its projects in process total which is related to our Axogen Processing Center (“APC Facility”). See "Note 12 - Commitments and Contingencies." Depreciation expense consisted of following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Depreciation expense $ 764 $ 654 $ 2,182 $ 2,059

Intangible Assets, Net

Intangible Assets, Net	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, Net	Intangible Assets, Net The Company’s intangible assets consisted of the following (in thousands): September 30, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents $ 3,245 $ (342) $ 2,903 $ 2,469 $ (234) $ 2,235 License agreements 1,101 (943) 158 1,101 (852) 249 Total amortizable intangible assets 4,346 (1,285) 3,061 3,570 (1,086) 2,484 Unamortized intangible assets Trademarks 387 — 387 375 — 375 Total intangible assets $ 4,733 $ (1,285) $ 3,448 $ 3,945 $ (1,086) $ 2,859 Amortization expense consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Amortization expense $ 66 $ 52 $ 198 $ 148 Expected future amortization of intangible assets as of September 30, 2022, is as follows (in thousands): Year Ending December 31, Expected Amortization Expense 2022 (excluding the nine months ended September 30, 2022) $ 68 2023 237 2024 169 2025 169 2026 167 Thereafter 2,251 Total amortized intangible assets $ 3,061 License Agreements The Company has License Agreements with the University of Florida Research Foundation and the University of Texas at Austin in which certain royalty payments are paid quarterly. Royalty expense consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Royalty expense $ 848 $ 687 $ 2,287 $ 2,037

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for classification and disclosure of fair value measurements as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. There has been no movement between Level 1 and Level 2 or between Level 2 and Level 3 from December 31, 2021, to September 30, 2022. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Debt Derivative Liabilities The Debt Derivative Liabilities are measured using a ‘with and without’ valuation model to compare the fair value of the Company's financing agreement with Oberland Capital including the identified embedded derivative features and the fair value of a plain vanilla note with the same terms. The fair value of the Oberland Facility including the embedded derivative features was determined using a probability-weighted expected return model based on four potential settlement scenarios for the Oberland Facility due to (a) a 5% probability of a mandatory prepayment event of the Oberland Facility on December 31, 2023; (b) a 15% probability of a mandatory prepayment event of the Oberland Facility on March 31, 2026; (c) a 5% probability of the prepayment of the Oberland Facility at the Company’s option on December 31, 2025; and (d) a 75% probability that the Oberland Facility will be held to its scheduled maturity dates in accordance with the terms of the debt agreement. The estimated settlement value of each scenario, which would include any required make-whole payment, is then discounted to present value using a discount rate that is derived based on the initial terms of the Oberland Facility at issuance and corroborated utilizing a synthetic credit rating analysis. The significant inputs that are included in the valuation of the Debt derivative liability - first tranche include: September 30, 2022 December 31, 2021 Input Remaining term (years) 4.75 years 5.5 years Maturity date June 30, 2027 June 30, 2027 Coupon rate 9.5% - 12.3% 9.5 % Revenue participation payments Maximum each year Maximum each year Discount rate 14.7% (1) 10.72% (1) Probability of mandatory prepayment before 2024 5.0 % (1) 5.0 % (1) Estimated timing of mandatory prepayment event before 2024 December 31, 2023 (1) December 31, 2023 (1) Probability of mandatory prepayment 2024 or after 15.0 % (1) 15.0 % (1) Estimated timing of mandatory prepayment event 2024 or after March 31, 2026 (1) March 31, 2026 (1) Probability of optional prepayment event 5.0 % (1) 5.0 % (1) Estimated timing of optional prepayment event December 31, 2025 (1) December 31, 2025 (1) (1) Represents a significant unobservable input The significant inputs that are included in the valuation of the Debt derivative liability - second tranche include: September 30, 2022 December 31, 2021 Input Remaining term (years) 5.75 years 6.5 Maturity date June 30, 2028 June 30, 2028 Coupon rate 9.5% - 12.3% 9.5% Revenue participation payments Maximum each year Maximum each year Discount rate 18.3 % (1) 13.21 % (1) Probability of mandatory prepayment before 2024 5.0% (1) 5.0% (1) Estimated timing of mandatory prepayment event before 2024 December 31, 2023 (1) December 31, 2023 (1) Probability of mandatory prepayment 2024 or after 15.0% (1) 15.0% (1) Estimated timing of mandatory prepayment event 2024 or after March 31, 2026 (1) March 31, 2026 (1) Probability of optional prepayment event 5.0% (1) 5.0% (1) Estimated timing of optional prepayment event December 31, 2025 (1) December 31, 2025 (1) (1) Represents a significant unobservable input The following table presents the financial assets and liabilities that the Company measured at fair value on a recurring basis as of September 30, 2022, classified in accordance with the fair value hierarchy (in thousands): Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 7,610 $ — $ — $ 7,610 U.S. government securities 22,874 — — 22,874 Commercial paper — 15,918 — 15,918 Total assets $ 30,484 $ 15,918 $ — $ 46,402 Liabilities Debt derivative liabilities — — 4,407 4,407 Total liabilities $ — $ — $ 4,407 $ 4,407 The following table presents the financial assets and liabilities that the Company measured at fair value on a recurring basis as of December 31, 2021, classified in accordance with the fair value hierarchy (in thousands): Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 22,012 $ — $ — $ 22,012 U.S. government securities 12,081 — — 12,081 Commercial paper — 39,249 — 39,249 Total assets $ 34,093 $ 39,249 $ — $ 73,342 Liabilities Debt derivative liabilities $ — — $ 5,562 $ 5,562 Total liabilities $ — $ — $ 5,562 $ 5,562 The changes in Level 3 liabilities measured at fair value on a recurring basis for the three and nine months ended September 30, 2022, were as follows (in thousands): Three Months Ended September 30, 2022 Beginning Balance, July 1, 2022 $ 4,876 Change in fair value included in net loss (469) Ending Balance, September 30, 2022 $ 4,407 Nine Months Ended September 30, 2022 Beginning Balance, January 1, 2022 $ 5,562 Change in fair value included in net loss (1,155) Ending Balance, September 30, 2022 $ 4,407 The changes in Level 3 liabilities measured at fair value on a recurring basis for the three and nine months ended September 30, 2021, were as follows (in thousands): Three Months Ended September 30, 2021 Beginning Balance, July 1, 2021 54,439 Change in fair value of Oberland Facility (826) Change in fair value of debt derivative 46 Ending Balance, September 30, 2021 $ 53,659 Nine Months Ended September 30, 2021 Beginning Balance, January 1, 2021 $ 39,352 Addition of Oberland Facility - second tranche 13,827 Addition of debt derivative - second tranche 1,173 Change in fair value of Oberland Facility (845) Change in fair value of debt derivative 152 Ending Balance September 30, 2021 $ 53,659 The fair value of cash, restricted cash, accounts receivable, accounts payable and accrued expenses approximate the carrying values because of the short-term nature of these instruments. The Oberland Facility is classified as Level 3 within the fair value hierarchy. The carrying value and estimated fair value of the Oberland Facility were $45,487 and $49,392 at September 30, 2022, and $45,325 and $52,605 at December 31, 2021, respectively. See "Note 8 - Long-Term Debt, Net of Debt Discount and Financing Fees."

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	Leases The Company leases administrative, manufacturing, research and distribution facilities through operating leases. Several leases include fixed payments including rent and non-lease components such as common-area or other maintenance costs. On January 27, 2022, the Company entered into a Commercial Lease Amendment ("Amendment") with JA-Cole L.P., with an effective date of February 1, 2022, pursuant to the original Commercial Lease dated April 21, 2015, as amended (the "Lease"). The lease is for the office and warehouse facility located in Burleson, Texas. The Amendment revised the commencement date to May 1, 2022, and the expiration date to April 30, 2027. The Company accounted for the Lease revisions as a lease modification in accordance with ASC 842, Leases , as the modification effectively terminated the existing lease and created a new lease which commenced on February 1, 2022. The Company valued the lease using a 11.3% incremental borrowing rate and recorded a right-of-use asset and a lease liability of $641 as a result of this amendment. On August 22, 2022, the Company, entered into the First Amendment to Lease Agreement (the “First Amendment”) with Ja-Cole, L.P. with an effective date of October 1, 2022, pursuant to the original Commercial Lease dated October 1, 2020, as amended (the "Lease"). The lease is for the office and warehouse facility located in Burleson, Texas. The First Amendment adds an additional 2,500 square feet to the Leased Premises, for a total of 5,000 square feet and revises the expiration date of the Lease to mean September 30, 2027. The Company accounted for the Lease revisions as a lease modification in accordance with ASC 842, Leases , as the modification effectively terminated the existing lease and created a new lease. The Company valued the lease using a 12.8% incremental borrowing rate and recorded a right-of-use asset and a lease liability of 221 as a result of this amendment. Total operating lease expense for the three months ended September 30, 2022, and 2021 was $1,337 and $1,211 respectively and $4,100 and $3,652 for the nine months ended September 30, 2022, and 2021, respectively. Supplemental balance sheet information related to the operating and financing leases is as follows: (In thousands, except lease term and discount rate) September 30, 2022 December 31, 2021 Operating Leases Right-of-use operating assets $ 14,751 $ 15,193 Current maturities of long-term lease obligations $ 1,523 $ 1,825 Long-term lease obligations $ 20,615 $ 20,794 Financing Leases Right-of-use financing leases (1) $ 46 $ 42 Current maturities of long-term lease obligations $ 7 $ 9 Long-term lease obligations $ 19 $ 4 Weighted average operating lease term (in years): 10.9 12.1 Weighted average operating financing term (in years): 4.2 2.2 Weighted average discount rate operating leases 10.48 % 10.32% Weighted average discount rate financing leases 11.69% 7.23% (1) Financing leases are included within property and equipment, net on the condensed consolidated balance sheets. Future minimum lease payments under operating and financing leases at September 30, 2022, were as follows: (In thousands) 2022 (excluding the nine months ended September 30, 2022) $ 1,092 2023 3,476 2024 3,253 2025 3,336 2026 3,348 2027 2,921 Thereafter 20,931 Total $ 38,356 Less: Imputed interest (16,192) Total lease liability $ 22,164 Less: Current lease liability (1,530) Long-term lease liability $ 20,634
Leases	Leases The Company leases administrative, manufacturing, research and distribution facilities through operating leases. Several leases include fixed payments including rent and non-lease components such as common-area or other maintenance costs. On January 27, 2022, the Company entered into a Commercial Lease Amendment ("Amendment") with JA-Cole L.P., with an effective date of February 1, 2022, pursuant to the original Commercial Lease dated April 21, 2015, as amended (the "Lease"). The lease is for the office and warehouse facility located in Burleson, Texas. The Amendment revised the commencement date to May 1, 2022, and the expiration date to April 30, 2027. The Company accounted for the Lease revisions as a lease modification in accordance with ASC 842, Leases , as the modification effectively terminated the existing lease and created a new lease which commenced on February 1, 2022. The Company valued the lease using a 11.3% incremental borrowing rate and recorded a right-of-use asset and a lease liability of $641 as a result of this amendment. On August 22, 2022, the Company, entered into the First Amendment to Lease Agreement (the “First Amendment”) with Ja-Cole, L.P. with an effective date of October 1, 2022, pursuant to the original Commercial Lease dated October 1, 2020, as amended (the "Lease"). The lease is for the office and warehouse facility located in Burleson, Texas. The First Amendment adds an additional 2,500 square feet to the Leased Premises, for a total of 5,000 square feet and revises the expiration date of the Lease to mean September 30, 2027. The Company accounted for the Lease revisions as a lease modification in accordance with ASC 842, Leases , as the modification effectively terminated the existing lease and created a new lease. The Company valued the lease using a 12.8% incremental borrowing rate and recorded a right-of-use asset and a lease liability of 221 as a result of this amendment. Total operating lease expense for the three months ended September 30, 2022, and 2021 was $1,337 and $1,211 respectively and $4,100 and $3,652 for the nine months ended September 30, 2022, and 2021, respectively. Supplemental balance sheet information related to the operating and financing leases is as follows: (In thousands, except lease term and discount rate) September 30, 2022 December 31, 2021 Operating Leases Right-of-use operating assets $ 14,751 $ 15,193 Current maturities of long-term lease obligations $ 1,523 $ 1,825 Long-term lease obligations $ 20,615 $ 20,794 Financing Leases Right-of-use financing leases (1) $ 46 $ 42 Current maturities of long-term lease obligations $ 7 $ 9 Long-term lease obligations $ 19 $ 4 Weighted average operating lease term (in years): 10.9 12.1 Weighted average operating financing term (in years): 4.2 2.2 Weighted average discount rate operating leases 10.48 % 10.32% Weighted average discount rate financing leases 11.69% 7.23% (1) Financing leases are included within property and equipment, net on the condensed consolidated balance sheets. Future minimum lease payments under operating and financing leases at September 30, 2022, were as follows: (In thousands) 2022 (excluding the nine months ended September 30, 2022) $ 1,092 2023 3,476 2024 3,253 2025 3,336 2026 3,348 2027 2,921 Thereafter 20,931 Total $ 38,356 Less: Imputed interest (16,192) Total lease liability $ 22,164 Less: Current lease liability (1,530) Long-term lease liability $ 20,634

Long-Term Debt, Net of Debt Dis

Long-Term Debt, Net of Debt Discount and Financing Fees	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Long-Term Debt, Net of Debt Discount and Financing Fees	Long-Term Debt, Net of Debt Discount and Financing Fees Long-term debt, net of debt discount and financing fees consists of the following: (In thousands) September 30, December 31, 2021 Oberland Facility - first tranche $ 35,000 $ 35,000 Oberland Facility - second tranche 15,000 15,000 Less - unamortized debt discount and deferred financing fees (4,513) (5,179) Long-term debt, net of debt discount and financing fees $ 45,487 $ 44,821 Oberland Facility On June 30, 2020, the Company entered into a seven-year financing agreement with Oberland Capital (the "Oberland Facility") and obtained the first tranche of $35,000 at closing. On June 30, 2021, the second tranche of $15,000 was drawn down by the Company. The Oberland Facility requires quarterly interest payments for seven years. Interest is calculated as 7.5% plus the greater of LIBOR or 2.0% (9.8% as of September 30, 2022). Each tranche of the Oberland Facility has a term of seven years from the date of issuance (with the first tranche issued on June 30, 2020, maturing on June 30, 2027 and the second tranche issued on June 30, 2021, maturing on June 30, 2028). In connection with the Oberland Facility, the Company entered into a revenue participation agreement with Oberland Capital, which provides that, among other things, a quarterly royalty payment as a percentage of the Company’s net revenues, up to $70 million in any given fiscal year, subject to certain limitations set forth therein, during the period commencing on the later of (i) April 1, 2021, and (ii) the date of funding of a tranche of the loan, and ending on the date upon which all amounts owed under the Oberland Facility have been paid in full (the “Revenue Participation Agreement”). Payments under the Revenue Participant Agreement commenced on September 30, 2021. The royalty structure of the Revenue Participant Agreement re s ults in approximately 1.0% per year of additional interest payments on the outstanding loan amount. The Company recorded interest expense of $49 and $337 for this Revenue Participation Agreement for the three months ended September 30, 2022, and 2021 and $756 and $590 for the nine months ended September 30, 2022 and 2021, respectively. The Company exceeded the maximum annual revenue participation threshold of $70,000 during the third quarter of 2022. The Company pays Oberland Capital quarterly debt interest on the last day of the quarter. The Company paid $1,249 and $1,218 for the three months ended September 30, 2022, and 2021, respectively, and $3,637 and $2,890 for the nine months ended September 30, 2022, and 2021, respectively. The Company capitalized interest of $1,450 and $1,338 for the three months ended September 30, 2022 and 2021, respectively and $4,474 and $2,526 for the nine months ended September 30, 2022 and 2021, respectively, towards the costs to construct and retrofit the APC Facility in Vandalia, OH. See "Note 12 - Commitments and Contingencies." Since inception, the Company has capitalized interest of $9,748 related to this project. The capitalized interest is recorded as part of property and equipment, net in the condensed consolidated balance sheets. As of September 30, 2022, the Company was in compliance with all financial covenants. See "Note 12 - Commitments and Contingencies." Embedded Derivatives The Debt Derivative Liabilities are recorded at fair value, with the change in fair value reported in the condensed consolidated statements of operations at each reporting date. The fair values of the Debt Derivative Liabilities were $4,407 and $5,562 at September 30, 2022, and December 31, 2021, respectively. See "Note 6 - Fair Value Measurement." Unamortized Debt Discount and Financing Fees The unamortized debt discount consists of the remaining unamortized initial fair values of the embedded derivatives related to the first and second tranches of the Oberland Facility. The debt discount is amortized over the respective life of the related tranche and recorded in interest expense using the effective yield method. The financing fees for the Oberland Facility were $642 and were recorded as a contra liability to the debt facility. The financing fees are amortized over the life of the first tranche of the Oberland Facility and recorded in interest expense. Amortization of debt discount and deferred financing fees for the three months ended September 30, 2022, and 2021 was $225 and $157, respectively, and for the nine months ended September 30, 2022, and 2021 was $667 and $384, respectively. Other credit facilities The Company had restricted cash of $6,251 at September 30, 2022, and December 31, 2021. The September 30, 2022, and December 31, 2021, balances both include $6,000 and $250, which represent collateral for two irrevocable standby letters of credit.

Stock-Based Incentive Plans

Stock-Based Incentive Plans	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Incentive Plans	Stock-Based Incentive Plans The Company maintains two share-based incentive plans: the Axogen, Inc. Second Amended and Restated 2019 Long-Term Incentive Plan, (“2019 Plan”), and the Axogen 2017 Employee Stock Purchase Plan (“2017 ESPP”). As of September 30, 2022, 3,340,010 shares of common stock were available for issuance under the 2019 Plan. The Company recognized share-based compensation expense, which consisted of compensation expense related to stock options, PSUs and RSUs based on the value of share-based payment awards that are ultimately expected to vest during the period and stock-based compensation expense of $3,849 and $2,911 for the three months ended September 30, 2022 and 2021, respectively, and $11,437 and $9,410 for the nine months ended September 30, 2022, and 2021, respectively. A summary of the stock option activity is as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2021 3,194,738 $15.65 6.45 $ 2,236 Granted 1,185,749 $9.13 Exercised (153,290) $4.44 Cancelled (229,964) $14.83 Outstanding, September 30, 2022 3,997,233 $14.20 6.77 $ 7,772 Exercisable, September 30, 2022 2,117,574 $15.63 4.85 $ 4,059 The Company used the following weighted-average assumptions for options granted during the nine months ended September 30, 2022: Expected term (in years) 6.02 Expected volatility 61.06 % Risk free rate 2.26 % Expected dividends — % As of September 30, 2022, there was approximately $8,251 of total unrecognized compensation costs related to unvested stock options. These costs are expected to be recognized over a weighted-average period of 2.6 years. Restricted and Performance Stock Units A summary of the restricted and performance stock unit activity is as follows: Outstanding Stock Units Stock Units Weighted-Average Fair Value at Date of Grant per Share Weighted Average Remaining Vesting Life Aggregate Intrinsic Value (in thousands) Unvested, December 31, 2021 1,730,765 $ 18.45 1.51 $ 19,633 Granted 1,916,963 $ 8.31 Released (315,275) $ 14.12 Forfeited (331,260) $ 13.42 Unvested, September 30, 2022 3,001,193 $ 12.98 1.82 $ 35,774 Performance Stock Units At September 30, 2022, the total future stock compensation expense related to non-vested performance awards at maximum target payout is expected to be approximately $3,774. As of September 30, 2022, there was approximately $17,487 of total unrecognized compensation costs related to both the PSU and RSU unvested awards. The Company expects to recognize these costs over a weighted-average period of 2.8 years. On March 16, 2022, the Compensation Committee of the Board of Directors approved PSUs that were tied to 2022, 2023 and 2024 revenue (the “2022 PSU award.”) The 2022 PSU award consists of a targeted award of 526,467 shares with a payout ranging from 0% to 150% upon achievement of specific revenue goals. Employee Stock Purchase Plan

Net Loss Per Common Share

Net Loss Per Common Share	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Net Loss Per Common Share	Net Loss Per Common ShareThe following reflects the net loss attributable to common shareholders and share data used in the basic and diluted earnings per share computations using the two-class method: Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share amounts) 2022 2021 2022 2021 Numerator: Net loss $ (4,318) $ (7,141) $ (23,533) $ (21,699) Denominator: Weighted-average common shares outstanding (Basic) 42,220,519 41,467,596 42,008,013 41,087,568 Weighted-average common shares outstanding (Diluted) 42,220,519 41,467,596 42,008,013 41,087,568 Net loss per common share (Basic and Diluted) $ (0.10) $ (0.17) $ (0.56) $ (0.53) Anti-dilutive shares excluded from the calculation of diluted earnings per share (1) Stock options 3,132,722 1,471,539 3,083,519 1,308,191 Restricted stock units 441,866 542,074 498,966 359,895 (1) These common equivalent shares are not included in the diluted per share calculations as they would be anti-dilutive if the Company was in a net income position.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company has not recorded current income tax expense due to the generation of net operating losses. Deferred income taxes are accounted for using the balance sheet approach, which requires recognition of deferred tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting basis and the tax basis of assets and liabilities. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized. A full valuation allowance has been established on the deferred tax asset as it is more likely than not that a future tax benefit will not be realized. In addition, future utilization of the available net operating loss carryforward may be limited under Internal Revenue Code Section 382 as a result of changes in ownership. The Company identifies and evaluates uncertain tax positions, if any, and recognizes the impact of uncertain tax positions for which there is a less than more likely than not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the condensed consolidated balance sheet. The Company has not recognized a liability for uncertain tax positions. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company’s remaining open tax years subject to examination by federal tax authorities include the years ended December 31, 2019, through 2021.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Service Agreements On August 6, 2015, the Company entered into a License and Service Agreement ("CTS Agreement") with Community Blood Center, (d/b/a Community Tissue Service) ("CTS") which has been extended through December 31, 2023. In accordance with the CTS Agreement, the Company pays CTS a facility fee for use of clean room/manufacturing, storage and office space, which the Company accounts for as an embedded lease in accordance with ASC 842, Leases . The Company also pays CTS for service in support of its manufacturing process such as for routine sterilization of daily supplies, providing disposable supplies, microbial services and office support. The Company paid fees to CTS during the three months ended September 30, 2022, and 2021, of approximately $541 and $630, respectively, and during the nine months ended September 30, 2022, and 2021 of approximately $1,785 and $1,901 which are included in cost of goods sold on the accompanying condensed consolidated statements of operations. In December 2011, the Company entered into a Master Services Agreement for Clinical Research and Related Services. The Company was required to pay $151 upon execution of this agreement and the remainder monthly based on activities associated with the execution of Axogen’s phase 3 pivotal clinical trial to support the BLA for Avance Nerve Graft. Payments made under this agreement were $279 and $362 for the three months ended September 30, 2022, and 2021, respectively, and $963 and $794 for the nine months ended September 30, 2022, and 2021, respectively. Concentrations Vendor Substantially all of the Company’s revenue is currently derived from five products, Avance Nerve Graft, Avive Soft Tissue Membrane (currently, market availability is suspended), Axoguard Nerve Protector, Axoguard Nerve Connector, and Axoguard Nerve Cap for the treatment of peripheral nerve damage. Of these five products, Avance Nerve Graft represents approximately half of the Company’s total revenue. The Company has an exclusive distribution agreement with Cook Biotech for the purchase of Axoguard which expires June 30, 2027. The agreement with Cook Biotech establishes a formula for the transfer cost of the Axoguard products and requires certain minimum purchases by the Company, although, through mutual agreement, the parties have not established such minimums and to date have not enforced such provision. The agreement allows for termination provisions for both parties. The loss of the ability to sell the Axoguard products could have a material adverse effect on the Company’s business until other replacement products would be available. Axogen Processing Center Facility The Company is highly dependent on the continued availability of its processing facilities at the Community Blood Center facility (“CTS”) in Dayton, Ohio and could be harmed if the physical infrastructure of this facility is unavailable for any prolonged period of time. On July 31, 2018, the Company purchased the APC Facility in Vandalia, Ohio, located near the CTS processing facility where Avance Nerve Graft is currently processed. The APC Facility, when and if operational, will be the new processing facility for Avance Nerve Graft to provide continued capacity for growth and to support the transition of Avance Nerve Graft to a biologic product. The APC Facility is comprised of a 107,000 square foot building on approximately 8.6 acres of land. The Company paid $731 for the land, which is recorded as land in property and equipment, net on the condensed consolidated balance sheet. The Company paid $4,300 for the building which is recorded in projects in process in property and equipment, net on the condensed consolidated balance sheet. On July 9, 2019, the Company entered into a Standard Form of Agreement Between Owner and Design-Builder with CRB Builders, L.L.C., (“CRB”), in which CRB will renovate and retrofit the APC Facility. For the three and nine months ended September 30, 2022, the Company recorded $2,688 and $8,119, respectively, of expenditures related to renovations and design and build in projects in progress. The Company has recorded $43,534 from inception-to-date related to this project. In addition to these project costs, the Company has capitalized interest of $1,450 and $4,474 for the three and nine months ended September 30, 2022, and $9,748 inception-to-date to the project. These items are recorded as projects in process in property and equipment, net on the condensed consolidated balance sheet. Fair Value of the Debt Derivative Liabilities The fair value of the Debt Derivative Liabilities was determined using a probability-weighted expected return model based upon four potential settlement scenarios for the Oberland Facility discounted to present value and compared to fair value of a plain vanilla note. The Company estimated the make-whole payments required under the Oberland Facility to generate an internal rate of return equal to 11.5% through the scheduled maturity dates, less the total of all quarterly interest and royalty payments previously paid to Oberland Capi tal. The calculation utilized the XIRR function in Microsoft Excel as required by the Oberland Facility. If the debt is not prepaid but instead is held to its scheduled maturities, the Company’s estimate of the make- whole payment for the first tranche and second tranches due on June 30, 2027, and June 30 2028, respectively, is approximately zero. The Company has consistently applied this approach since the inception of the debt agreement on June 30, 2020. In the first quarter of 2022, the Company became aware that Oberland Capital may have an alternative interpretation of the calculation of the make-whole payments that the Company believ es does not properly utilize the same methodology utilized by the XIRR function in Microsoft Excel as described in the Oberland Facility. The Company estimates the top end of the range of the make-whole payments if the debt is held to scheduled maturity under an alternative interpretation to be approximately $9,200 for the first tranche of the Oberland Facility on June 30, 2027, and approximately $3,600 for the second tranche of the Oberland Facility on June 30, 2028. Further, if the debt is prepaid prior to the scheduled maturity dates and subject to the alternative interpretation, the make-whole payment would be larger than the amounts herein. The make whole-payments as described above, have decreased due to rising interest rates: however, there have been no further updates since reported in the Company's Annual Report on Form 10-K as of and for the year ended December 31, 2021. Legal Proceedings The Company is and may be subject to various claims, lawsuits, and proceedings in the ordinary course of the Company's business. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. While there can be no assurances as to the ultimate outcome of any legal proceeding or other loss contingency involving the Company. In the opinion of management, such claims are either adequately covered by insurance or otherwise indemnified, or are not expected, individually or in the aggregate, to result in a material, adverse effect on the Comp any's financial condition, results of operations or cash flows. However, it is possible that the Company's results of operations, financial position and cash flows in a particular period could be materially affected by these contingencies.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Cash and Cash Equivalents and Concentration	Cash and Cash Equivalents and ConcentrationThe Company considers highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents in the accompanying condensed consolidated financial statements. The Company has not experienced any losses related to these balances; however, as of September 30, 2022, $13,818 of the cash and cash equivalents balance was in excess of Federal Deposit Insurance Corporation limits.
Stock-Based Compensation	St ock-Based Compensation The Company measures stock options granted to employees at a premium price based on market conditions, such as the trading price of the Company’s common stock, using a Monte Carlo Simulation model in estimating the fair value at grant date. The determination of the fair value is affected by the Company's stock price, as well as assumptions regarding several subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards. The Company determines the expected life of each award giving consideration to the contractual terms, vesting schedules, and post-vesting forfeitures. The Company uses the risk-free interest rate on the implied yield currently available on U.S. Treasury issues with an equivalent remaining term approximately equal to the expected life of the award. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statements of operations. The expense has been reduced for forfeitures as they occur.
Cost of Goods Sold	Costs of Goods Sold Cost of sales includes direct labor and materials costs related to each product sold or produced, including processing, quality assurance labor and scrap, as well as facility and warehousing overhead supporting our manufacturing operations. All of our manufacturing costs are included in cost of sales.
Shipping and Handling	Shipping and Handling All shipping and handling costs, including facility and warehousing overhead, directly related to bringing the Company’s products to their final selling destination are in included in selling and marketing expenses. Shipping and handling costs included in sales and marketing were $1,330 and $1,366 for the three months ended September 30, 2022, and 2021, respectively and $3,863 and $3,657 for the nine months ended September 30, 2022, and 2021, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2021, the Financial Accounting Standards ("FASB") amended Accounting Standards Codification ("ASC") 832, Government Assistance (issued under Accounting Standards Update ("ASU") 2021-10, Disclosures by Business Entities a bout Government Assistance ). This amendment requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy, including, (1) the types of transactions; (2) the financial statement line items affected by the transaction, and; (3) significant terms and conditions associated with the transactions. The Company adopted the guidance on January 1, 2022 and the adoption of ASU 2021-10 did not to have a material impact on the Company's condensed consolidated financial condition, results of operations or disclosures.
Fair Value Measurement	Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for classification and disclosure of fair value measurements as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. There has been no movement between Level 1 and Level 2 or between Level 2 and Level 3 from December 31, 2021, to September 30, 2022. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Schedule of cash and cash equivalents	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows: (In thousands) September 30, December 31, Cash and cash equivalents $ 14,318 $ 32,756 Restricted cash 6,251 6,251 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 20,569 $ 39,007

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Schedule of inventory	Inventory consisted of the following (in thousands): September 30, December 31, Finished goods $ 12,823 $ 11,011 Work in process 903 813 Raw materials 5,390 4,869 Inventory $ 19,116 $ 16,693

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment, net consisted of the following (in thousands): September 30, December 31, Furniture and equipment $ 5,408 $ 5,100 Leasehold improvements 15,569 14,952 Processing equipment 4,229 3,984 Land 731 731 Projects in process 58,595 45,660 Finance lease right-of-use assets 131 110 Property and equipment, at cost 84,663 70,537 Less: accumulated depreciation and amortization (9,796) (7,614) Property and equipment, net $ 74,867 $ 62,923 Depreciation expense consisted of following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Depreciation expense $ 764 $ 654 $ 2,182 $ 2,059

Intangible Assets, Net (Tables)

Intangible Assets, Net (Tables)	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	The Company’s intangible assets consisted of the following (in thousands): September 30, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents $ 3,245 $ (342) $ 2,903 $ 2,469 $ (234) $ 2,235 License agreements 1,101 (943) 158 1,101 (852) 249 Total amortizable intangible assets 4,346 (1,285) 3,061 3,570 (1,086) 2,484 Unamortized intangible assets Trademarks 387 — 387 375 — 375 Total intangible assets $ 4,733 $ (1,285) $ 3,448 $ 3,945 $ (1,086) $ 2,859
Schedule of future amortization	Amortization expense consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Amortization expense $ 66 $ 52 $ 198 $ 148 Expected future amortization of intangible assets as of September 30, 2022, is as follows (in thousands): Year Ending December 31, Expected Amortization Expense 2022 (excluding the nine months ended September 30, 2022) $ 68 2023 237 2024 169 2025 169 2026 167 Thereafter 2,251 Total amortized intangible assets $ 3,061
Schedule of royalty expenses	Royalty expense consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Royalty expense $ 848 $ 687 $ 2,287 $ 2,037

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Summary of significant inputs in liability valuation	The significant inputs that are included in the valuation of the Debt derivative liability - first tranche include: September 30, 2022 December 31, 2021 Input Remaining term (years) 4.75 years 5.5 years Maturity date June 30, 2027 June 30, 2027 Coupon rate 9.5% - 12.3% 9.5 % Revenue participation payments Maximum each year Maximum each year Discount rate 14.7% (1) 10.72% (1) Probability of mandatory prepayment before 2024 5.0 % (1) 5.0 % (1) Estimated timing of mandatory prepayment event before 2024 December 31, 2023 (1) December 31, 2023 (1) Probability of mandatory prepayment 2024 or after 15.0 % (1) 15.0 % (1) Estimated timing of mandatory prepayment event 2024 or after March 31, 2026 (1) March 31, 2026 (1) Probability of optional prepayment event 5.0 % (1) 5.0 % (1) Estimated timing of optional prepayment event December 31, 2025 (1) December 31, 2025 (1) (1) Represents a significant unobservable input The significant inputs that are included in the valuation of the Debt derivative liability - second tranche include: September 30, 2022 December 31, 2021 Input Remaining term (years) 5.75 years 6.5 Maturity date June 30, 2028 June 30, 2028 Coupon rate 9.5% - 12.3% 9.5% Revenue participation payments Maximum each year Maximum each year Discount rate 18.3 % (1) 13.21 % (1) Probability of mandatory prepayment before 2024 5.0% (1) 5.0% (1) Estimated timing of mandatory prepayment event before 2024 December 31, 2023 (1) December 31, 2023 (1) Probability of mandatory prepayment 2024 or after 15.0% (1) 15.0% (1) Estimated timing of mandatory prepayment event 2024 or after March 31, 2026 (1) March 31, 2026 (1) Probability of optional prepayment event 5.0% (1) 5.0% (1) Estimated timing of optional prepayment event December 31, 2025 (1) December 31, 2025 (1) (1) Represents a significant unobservable input
Summary of fair value financial assets measured on a recurring basis	The following table presents the financial assets and liabilities that the Company measured at fair value on a recurring basis as of September 30, 2022, classified in accordance with the fair value hierarchy (in thousands): Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 7,610 $ — $ — $ 7,610 U.S. government securities 22,874 — — 22,874 Commercial paper — 15,918 — 15,918 Total assets $ 30,484 $ 15,918 $ — $ 46,402 Liabilities Debt derivative liabilities — — 4,407 4,407 Total liabilities $ — $ — $ 4,407 $ 4,407 The following table presents the financial assets and liabilities that the Company measured at fair value on a recurring basis as of December 31, 2021, classified in accordance with the fair value hierarchy (in thousands): Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total Assets: Money market funds $ 22,012 $ — $ — $ 22,012 U.S. government securities 12,081 — — 12,081 Commercial paper — 39,249 — 39,249 Total assets $ 34,093 $ 39,249 $ — $ 73,342 Liabilities Debt derivative liabilities $ — — $ 5,562 $ 5,562 Total liabilities $ — $ — $ 5,562 $ 5,562
Schedule of fair value instruments classified Level 3	The changes in Level 3 liabilities measured at fair value on a recurring basis for the three and nine months ended September 30, 2022, were as follows (in thousands): Three Months Ended September 30, 2022 Beginning Balance, July 1, 2022 $ 4,876 Change in fair value included in net loss (469) Ending Balance, September 30, 2022 $ 4,407 Nine Months Ended September 30, 2022 Beginning Balance, January 1, 2022 $ 5,562 Change in fair value included in net loss (1,155) Ending Balance, September 30, 2022 $ 4,407 The changes in Level 3 liabilities measured at fair value on a recurring basis for the three and nine months ended September 30, 2021, were as follows (in thousands): Three Months Ended September 30, 2021 Beginning Balance, July 1, 2021 54,439 Change in fair value of Oberland Facility (826) Change in fair value of debt derivative 46 Ending Balance, September 30, 2021 $ 53,659 Nine Months Ended September 30, 2021 Beginning Balance, January 1, 2021 $ 39,352 Addition of Oberland Facility - second tranche 13,827 Addition of debt derivative - second tranche 1,173 Change in fair value of Oberland Facility (845) Change in fair value of debt derivative 152 Ending Balance September 30, 2021 $ 53,659

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Supplemental balance sheet information	Supplemental balance sheet information related to the operating and financing leases is as follows: (In thousands, except lease term and discount rate) September 30, 2022 December 31, 2021 Operating Leases Right-of-use operating assets $ 14,751 $ 15,193 Current maturities of long-term lease obligations $ 1,523 $ 1,825 Long-term lease obligations $ 20,615 $ 20,794 Financing Leases Right-of-use financing leases (1) $ 46 $ 42 Current maturities of long-term lease obligations $ 7 $ 9 Long-term lease obligations $ 19 $ 4 Weighted average operating lease term (in years): 10.9 12.1 Weighted average operating financing term (in years): 4.2 2.2 Weighted average discount rate operating leases 10.48 % 10.32% Weighted average discount rate financing leases 11.69% 7.23%
Summary of operating lease maturity	Future minimum lease payments under operating and financing leases at September 30, 2022, were as follows: (In thousands) 2022 (excluding the nine months ended September 30, 2022) $ 1,092 2023 3,476 2024 3,253 2025 3,336 2026 3,348 2027 2,921 Thereafter 20,931 Total $ 38,356 Less: Imputed interest (16,192) Total lease liability $ 22,164 Less: Current lease liability (1,530) Long-term lease liability $ 20,634
Summary of finance lease maturity	Future minimum lease payments under operating and financing leases at September 30, 2022, were as follows: (In thousands) 2022 (excluding the nine months ended September 30, 2022) $ 1,092 2023 3,476 2024 3,253 2025 3,336 2026 3,348 2027 2,921 Thereafter 20,931 Total $ 38,356 Less: Imputed interest (16,192) Total lease liability $ 22,164 Less: Current lease liability (1,530) Long-term lease liability $ 20,634

Long-Term Debt, Net of Debt D_2

Long-Term Debt, Net of Debt Discount and Financing Fees (Tables)	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Schedule of Long-term debt, net of debt discount and financing fees	Long-term debt, net of debt discount and financing fees consists of the following: (In thousands) September 30, December 31, 2021 Oberland Facility - first tranche $ 35,000 $ 35,000 Oberland Facility - second tranche 15,000 15,000 Less - unamortized debt discount and deferred financing fees (4,513) (5,179) Long-term debt, net of debt discount and financing fees $ 45,487 $ 44,821

Stock-Based Incentive Plans (Ta

Stock-Based Incentive Plans (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Summary of stock option activity	A summary of the stock option activity is as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2021 3,194,738 $15.65 6.45 $ 2,236 Granted 1,185,749 $9.13 Exercised (153,290) $4.44 Cancelled (229,964) $14.83 Outstanding, September 30, 2022 3,997,233 $14.20 6.77 $ 7,772 Exercisable, September 30, 2022 2,117,574 $15.63 4.85 $ 4,059
Schedule of weighted-average assumptions for options granted	The Company used the following weighted-average assumptions for options granted during the nine months ended September 30, 2022: Expected term (in years) 6.02 Expected volatility 61.06 % Risk free rate 2.26 % Expected dividends — %
Summary of stock unit activity	A summary of the restricted and performance stock unit activity is as follows: Outstanding Stock Units Stock Units Weighted-Average Fair Value at Date of Grant per Share Weighted Average Remaining Vesting Life Aggregate Intrinsic Value (in thousands) Unvested, December 31, 2021 1,730,765 $ 18.45 1.51 $ 19,633 Granted 1,916,963 $ 8.31 Released (315,275) $ 14.12 Forfeited (331,260) $ 13.42 Unvested, September 30, 2022 3,001,193 $ 12.98 1.82 $ 35,774

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Schedule of net loss per common share	The following reflects the net loss attributable to common shareholders and share data used in the basic and diluted earnings per share computations using the two-class method: Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share amounts) 2022 2021 2022 2021 Numerator: Net loss $ (4,318) $ (7,141) $ (23,533) $ (21,699) Denominator: Weighted-average common shares outstanding (Basic) 42,220,519 41,467,596 42,008,013 41,087,568 Weighted-average common shares outstanding (Diluted) 42,220,519 41,467,596 42,008,013 41,087,568 Net loss per common share (Basic and Diluted) $ (0.10) $ (0.17) $ (0.56) $ (0.53) Anti-dilutive shares excluded from the calculation of diluted earnings per share (1) Stock options 3,132,722 1,471,539 3,083,519 1,308,191 Restricted stock units 441,866 542,074 498,966 359,895 (1) These common equivalent shares are not included in the diluted per share calculations as they would be anti-dilutive if the Company was in a net income position.

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) letterOfCredit	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) letterOfCredit	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) letterOfCredit
Cash and cash equivalents balance outside of FDIC limit	$ 13,818		$ 13,818
Restricted cash	$ 6,251		$ 6,251		$ 6,251
Number of letters of credit | letterOfCredit	2		2		2
Sales and marketing	$ 19,792	$ 18,370	$ 60,349	$ 55,594
Shipping and Handling
Sales and marketing	1,330	$ 1,366	3,863	$ 3,657
Restricted Cash
Collateral amount	$ 6,000		$ 6,000		$ 250

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Reconciliation of Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 14,318	$ 32,756
Restricted cash	6,251	6,251
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 20,569	$ 39,007	$ 53,063	$ 55,609

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Inventory [Line Items]
Finished goods	$ 12,823		$ 12,823		$ 11,011
Work in process	903		903		813
Raw materials	5,390		5,390		4,869
Inventory	19,116		19,116		$ 16,693
Provision for inventory write-down	$ 452	$ 395	$ 1,381	$ 2,850
Avive
Inventory [Line Items]
Provision for inventory write-down				$ 1,251

Property and Equipment, Net -Sc

Property and Equipment, Net -Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Finance lease right-of-use assets	$ 131	$ 110
Property and equipment, at cost	84,663	70,537
Less: accumulated depreciation and amortization	(9,796)	(7,614)
Property and equipment, net	74,867	62,923
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	5,408	5,100
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	15,569	14,952
Processing equipment
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	4,229	3,984
Land
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	731	731
Projects in process
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	$ 58,595	$ 45,660

Property and Equipment, Net - S

Property and Equipment, Net - Schedule of Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 764	$ 654	$ 2,182	$ 2,059

Intangible Assets, Net - Compon

Intangible Assets, Net - Components of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Finite-lived Intangible Assets [Roll Forward]
Gross Carrying Amount	$ 4,346	$ 3,570
Accumulated Amortization	(1,285)	(1,086)
Total amortized intangible assets	3,061	2,484
Indefinite-lived Intangible Assets [Roll Forward]
Intangible assets, gross	4,733	3,945
Intangible assets, net	3,448	2,859
Trademarks
Indefinite-lived Intangible Assets [Roll Forward]
Carrying Amount	387	375
Patents
Finite-lived Intangible Assets [Roll Forward]
Gross Carrying Amount	3,245	2,469
Accumulated Amortization	(342)	(234)
Total amortized intangible assets	2,903	2,235
License agreements
Finite-lived Intangible Assets [Roll Forward]
Gross Carrying Amount	1,101	1,101
Accumulated Amortization	(943)	(852)
Total amortized intangible assets	$ 158	$ 249

Intangible Assets, Net - Future

Intangible Assets, Net - Future Amortization of Patents and License Agreements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Intangible assets
Amortization of intangible assets	$ 66	$ 52	$ 198	$ 148
Total amortized intangible assets	3,061		3,061		$ 2,484
Patents And License Agreements
Intangible assets
2022 (excluding the nine months ended September 30, 2022)	68		68
2023	237		237
2024	169		169
2025	169		169
2026	167		167
Thereafter	2,251		2,251
Total amortized intangible assets	$ 3,061		$ 3,061

Intangible Assets, Net - Schedu

Intangible Assets, Net - Schedule of Royalty Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Sales and Marketing Expense
Intangible assets
Royalty expense	$ 848	$ 687	$ 2,287	$ 2,037

Fair Value Measurement - Narrat

Fair Value Measurement - Narrative (Details) - Oberland Facility $ in Thousands	Sep. 30, 2022 USD ($) settlementScenario	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	$ 45,487	$ 45,325
Fair value of long-term debt	$ 49,392	$ 52,605
Debt derivative liabilities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Number of potential settlement scenarios | settlementScenario	4
Debt derivative liabilities | Period One
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.05
Debt derivative liabilities | Period Three | Oberland Option
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.05
Debt derivative liabilities | Period Two
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.15
Debt derivative liabilities | Period Four
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.75

Fair Value Measurement - Signif

Fair Value Measurement - Significant Inputs Included in the Valuation of the Debt Derivative Liability (Details) - Debt derivative liabilities	Sep. 30, 2022	Dec. 31, 2021
First Tranche | Remaining term (years)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	4.75	5.5
First Tranche | Coupon rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input		0.095
First Tranche | Coupon rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.095
First Tranche | Coupon rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.123
First Tranche | Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.147	0.1072
First Tranche | Mandatory prepayment rate | Probability of mandatory prepayment before 2024
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.050	0.050
First Tranche | Mandatory prepayment rate | Probability of mandatory prepayment 2024 or after
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.150	0.150
First Tranche | Mandatory prepayment rate | Probability of optional prepayment event
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.050	0.050
Second Tranche | Remaining term (years)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	5.75	6.5
Second Tranche | Coupon rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input		0.095
Second Tranche | Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.183	0.1321
Second Tranche | Mandatory prepayment rate | Probability of mandatory prepayment before 2024
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.050	0.050
Second Tranche | Mandatory prepayment rate | Probability of mandatory prepayment 2024 or after
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.150	0.150
Second Tranche | Mandatory prepayment rate | Probability of optional prepayment event
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.050	0.050

Fair Value Measurement - Schedu

Fair Value Measurement - Schedule of Assets and Liabilities at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt derivative liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt derivative liabilities	$ 4,407	$ 5,562
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	46,402	73,342
Total liabilities	4,407	5,562
Recurring | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	7,610	22,012
Recurring | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	22,874	12,081
Recurring | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	15,918	39,249
Recurring | Debt derivative liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt derivative liabilities	4,407	5,562
Recurring | (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	30,484	34,093
Total liabilities	0	0
Recurring | (Level 1) | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	7,610	22,012
Recurring | (Level 1) | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	22,874	12,081
Recurring | (Level 1) | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Recurring | (Level 1) | Debt derivative liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt derivative liabilities	0	0
Recurring | (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	15,918	39,249
Total liabilities	0	0
Recurring | (Level 2) | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Recurring | (Level 2) | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Recurring | (Level 2) | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	15,918	39,249
Recurring | (Level 2) | Debt derivative liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt derivative liabilities	0	0
Recurring | (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Total liabilities	4,407	5,562
Recurring | (Level 3) | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Recurring | (Level 3) | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Recurring | (Level 3) | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Recurring | (Level 3) | Debt derivative liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt derivative liabilities	$ 4,407	$ 5,562

Fair Value Measurement - Fair V

Fair Value Measurement - Fair Value of Instruments Classified as Level 3 (Details) - (Level 3) - Recurring - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 4,876	$ 54,439	$ 5,562	$ 39,352
Change in fair value	(469)		(1,155)
Ending balance	$ 4,407	53,659	$ 4,407	53,659
Oberland Facility
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Additions				13,827
Change in fair value		(826)		(845)
Debt derivative liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Additions				1,173
Change in fair value		$ 46		$ 152

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Thousands			3 Months Ended		9 Months Ended
	Aug. 22, 2022 USD ($) ft²	Jan. 27, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets			$ 14,751		$ 14,751		$ 15,193
Operating lease expense			$ 1,337	$ 1,211	$ 4,100	$ 3,652
Commercial Lease with JA-Cole L.P
Lessee, Lease, Description [Line Items]
Operating lease, incremental borrowing rate		11.30%
Operating lease right-of-use assets		$ 641
Total lease liability		$ 641
Size of building space | ft²	5,000
Commercial Lease with JA-Cole L.P, First Amendment
Lessee, Lease, Description [Line Items]
Operating lease, incremental borrowing rate	12.80%
Operating lease right-of-use assets	$ 221
Total lease liability	$ 221
Size of building space | ft²	2,500

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Operating Leases
Operating lease right-of-use assets	$ 14,751	$ 15,193
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Current maturities of long-term lease obligations	Current maturities of long-term lease obligations
Current maturities of long-term lease obligations	$ 1,523	$ 1,825
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Long-term lease obligations	Long-term lease obligations
Long-term lease obligations	$ 20,615	$ 20,794
Financing Leases
Finance lease right-of-use assets	$ 46	$ 42
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Current maturities of long-term lease obligations	Current maturities of long-term lease obligations
Current maturities of long-term lease obligations	$ 7	$ 9
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Long-term lease obligations	Long-term lease obligations
Long-term lease obligations	$ 19	$ 4
Weighted average operating lease term (in years):	10 years 10 months 24 days	12 years 1 month 6 days
Weighted average operating financing term (in years):	4 years 2 months 12 days	2 years 2 months 12 days
Weighted average discount rate operating leases	10.48%	10.32%
Weighted average discount rate financing leases	11.69%	7.23%

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Leases [Abstract]
2022 (excluding the nine months ended September 30, 2022)	$ 1,092
2023	3,476
2024	3,253
2025	3,336
2026	3,348
2027	2,921
Thereafter	20,931
Total	38,356
Less: Imputed interest	(16,192)
Total lease liability	22,164
Less: Current lease liability	(1,530)
Long-term lease liability	$ 20,634

Long-Term Debt, Net of Debt D_3

Long-Term Debt, Net of Debt Discount and Financing Fees - Carrying Value of Outstanding Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Jun. 30, 2020
Debt Instrument [Line Items]
Less - unamortized debt discount and deferred financing fees	$ (4,513)	$ (5,179)
Long-term debt, net of debt discount and financing fees	45,487	44,821
First Tranche
Debt Instrument [Line Items]
Long-term debt	35,000	35,000		$ 35,000
Second Tranche
Debt Instrument [Line Items]
Long-term debt	$ 15,000	$ 15,000	$ 15,000

Long-Term Debt, Net of Debt D_4

Long-Term Debt, Net of Debt Discount and Financing Fees - Narrative (Details) $ in Thousands		3 Months Ended		9 Months Ended
	Jun. 30, 2020 USD ($)	Sep. 30, 2022 USD ($) letterOfCredit	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) letterOfCredit	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) letterOfCredit	Jun. 30, 2021 USD ($)
Debt Instrument [Line Items]
Amortization of debt discount and deferred financing fees		$ 225	$ 157	$ 667	$ 384
Restricted cash		$ 6,251		$ 6,251		$ 6,251
Number of letters of credit | letterOfCredit		2		2		2
Restricted Cash
Debt Instrument [Line Items]
Collateral amount		$ 6,000		$ 6,000		$ 250
Debt derivative liabilities
Debt Instrument [Line Items]
Fair value of derivatives		4,407		4,407		5,562
Oberland Facility
Debt Instrument [Line Items]
Term of debt	7 years
Long-term debt		$ 45,487		$ 45,487		45,325
Period for which quarterly interest payments should be made	7 years
Interest rate (as a percent)	7.50%
Interest rate at period end (as a percent)		9.80%		9.80%
Threshold revenue achievement for payment of additional quarterly royalty	$ 70,000	$ 70
Additional payment percentage	1%
Interest costs incurred		49	337	$ 756	590
Cash paid for interest		1,249	1,218	3,637	2,890
Interest capitalized		1,450	$ 1,338	4,474	$ 2,526
Accumulated capitalized interest costs		9,748		9,748
Financing costs		642		642
Oberland Facility | LIBOR
Debt Instrument [Line Items]
Additional interest floor rate (as a percent)	2%
First Tranche
Debt Instrument [Line Items]
Long-term debt	$ 35,000	35,000		35,000		35,000
Second Tranche
Debt Instrument [Line Items]
Long-term debt		$ 15,000		$ 15,000		$ 15,000	$ 15,000

Stock-Based Incentive Plans - N

Stock-Based Incentive Plans - Narrative (Details) $ in Thousands		3 Months Ended		9 Months Ended
	Mar. 16, 2022 shares	Sep. 30, 2022 USD ($) shares	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) plan shares	Sep. 30, 2021 USD ($)
Stock Option Disclosures
Share-based incentive plans | plan				2
Share-based compensation expense | $		$ 3,849	$ 2,911	$ 11,437	$ 9,410
Unrecognized compensation costs related to non-vested stock options and performance stock awards | $		8,251		$ 8,251
Stock options
Stock Option Disclosures
Weighted average period of recognition of unrecognized compensation expense				2 years 7 months 6 days
Restricted and Performance Stock Units
Stock Option Disclosures
Unrecognized compensation costs related to non-vested stock options and performance stock awards | $		17,487		$ 17,487
Weighted average period of recognition of unrecognized compensation expense				2 years 9 months 18 days
PSUs
Stock Option Disclosures
Unrecognized compensation costs related to non-vested stock options and performance stock awards | $		$ 3,774		$ 3,774
PSUs | Two Thousand Twenty-Two
Stock Option Disclosures
Shares authorized for issuance (in shares) | shares	526,467
PSUs | Minimum | Two Thousand Twenty-Two
Stock Option Disclosures
Payout opportunity	0%
PSUs | Maximum | Two Thousand Twenty-Two
Stock Option Disclosures
Payout opportunity	150%
2019 Plan
Stock Option Disclosures
Shares authorized for issuance (in shares) | shares		3,340,010		3,340,010
2017 ESPP
Stock Option Disclosures
Shares authorized for issuance (in shares) | shares		600,000		600,000
Additional shares authorized for future issuance (in shares) | shares				126,674

Stock-Based Incentive Plans - S

Stock-Based Incentive Plans - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Options
Outstanding at the beginning of the period (in shares)	3,194,738
Granted (in shares)	1,185,749
Exercised (in shares)	(153,290)
Cancelled (in shares)	(229,964)
Outstanding at the end of the period (in shares)	3,997,233	3,194,738
Exercisable (in shares)	2,117,574
Weighted Average Exercise Price
Outstanding at the beginning of the period (in USD per share)	$ 15.65
Granted (in USD per share)	9.13
Exercised (in USD per share)	4.44
Cancelled (in USD per share)	14.83
Outstanding at the end of the period (in USD per share)	14.20	$ 15.65
Exercisable (in USD per share)	$ 15.63
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Life, Outstanding (in years)	6 years 9 months 7 days	6 years 5 months 12 days
Weighted Average Remaining Contractual Life, Exercisable (in years)	4 years 10 months 6 days
Aggregate Intrinsic Value, Outstanding	$ 7,772	$ 2,236
Aggregate Intrinsic Value, Exercisable	$ 4,059

Stock-Based Incentive Plans -_2

Stock-Based Incentive Plans - Summary of Weighted-Average Assumptions Used (Details)	9 Months Ended
	Sep. 30, 2022
Weighted-average assumptions
Expected term (in years)	6 years 7 days
Expected volatility	61.06%
Risk free rate	2.26%
Expected dividends	0%

Stock-Based Incentive Plans - R

Stock-Based Incentive Plans - RSU and PSU Award Activity (Details) - Restricted and Performance Stock Units - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Stock Units
Unvested beginning balance (in shares)	1,730,765
Granted (in shares)	1,916,963
Released (in shares)	(315,275)
Forfeited (in shares)	(331,260)
Unvested ending balance (in shares)	3,001,193	1,730,765
Weighted-Average Fair Value at Date of Grant per Share
Unvested beginning balance (in USD per share)	$ 18.45
Granted (in USD per share)	8.31
Released (in USD per share)	14.12
Forfeited (in USD per share)	13.42
Unvested ending balance (in USD per share)	$ 12.98	$ 18.45
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Unvested, Weighted Average Remaining Vesting Life (in years)	1 year 9 months 25 days	1 year 6 months 3 days
Unvested, Aggregate Intrinsic Value	$ 35,774	$ 19,633

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net loss	$ (4,318)	$ (7,141)	$ (23,533)	$ (21,699)
Denominator:
Weighted average common shares outstanding - basic (in shares)	42,220,519	41,467,596	42,008,013	41,087,568
Weighted average common shares outstanding - diluted (in shares)	42,220,519	41,467,596	42,008,013	41,087,568
Loss per common share - basic (in dollars per share)	$ (0.10)	$ (0.17)	$ (0.56)	$ (0.53)
Loss per common share - diluted (in dollars per share)	$ (0.10)	$ (0.17)	$ (0.56)	$ (0.53)
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of net loss per share (in shares)	3,132,722	1,471,539	3,083,519	1,308,191
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of net loss per share (in shares)	441,866	542,074	498,966	359,895

Commitments and Contingencies -

Commitments and Contingencies - Service Agreements Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2011	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CTS Agreement | Cost of Sales
Service Agreements
Payments made under agreement		$ 541	$ 630	$ 1,785	$ 1,901
Master Services Agreement For Clinical Research and Related Services
Service Agreements
Payments made under agreement		$ 279	$ 362	$ 963	$ 794
Service agreement amount paid upon execution of agreement	$ 151

Commitments and Contingencies_2

Commitments and Contingencies - Vendor Narrative (Details)	9 Months Ended
	Sep. 30, 2022 product
Commitments and Contingencies Disclosure [Abstract]
Number of products generating substantially all revenue	5

Commitments and Contingencies_3

Commitments and Contingencies - Axogen Processing Center Facility Narrative (Details) ft² in Thousands, $ in Thousands		3 Months Ended	9 Months Ended	39 Months Ended
	Jul. 31, 2018 USD ($) ft² a	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)
Projects in process | Design Build Agreement
Concentrations
Property, plant and equipment, additions		$ 2,688	$ 8,119	$ 43,534
Interest capitalized		1,450	4,474
Accumulated capitalized interest costs		$ 9,748	$ 9,748	$ 9,748
APC Facility
Concentrations
Size of building space | ft²	107
Area of land where building resides | a	8.6
Payments to acquire land	$ 731
Payments to acquire building	$ 4,300

Commitments and Contingencies_4

Commitments and Contingencies - Overland Facility Make-Whole Payment (Details)	Sep. 30, 2022 USD ($)
Oberland Facility | Debt derivative liabilities
Debt Instrument [Line Items]
Make-whole payment required under each scenario, internal rate of return	11.50%
First Tranche
Debt Instrument [Line Items]
Held to maturity make-whole payment, alternative interpretation	$ 9,200,000
Second Tranche
Debt Instrument [Line Items]
Held to maturity make-whole payment, alternative interpretation	$ 3,600,000